What do you get the person that has everything? It's a real conundrum - and anyone who has ever had to reward or thank a high net worth individual has
What do you get the person that has everything? It’s a real conundrum – and anyone who has ever had to reward or thank a high net worth individual has to be on the ball. Did you know that nearly half of all high net worth individuals still struggle to choose gifts that impress themselves? Chances are, getting them a gift or a reward is even harder and something you’ll need some help with. That’s why when we saw a new study from The Hurun Research Institute with MEC “China HNWI Gifting White Paper” which surveyed 507 of China’s most successful high net worth individuals gifting behaviour, we wondered if there were any takeaways for rewarding high net worth individuals (typed as HNWI to save our poor fingers here on in.) Whether you’re doing a marketing campaign, getting a gift, saying thanks or just trying to understand your market segment, this could have some useful tips!
Selecting a gift bring “Little But Certain Happiness”
Interestingly, 67% HNWIs have given themselves gifts last year. This is more common among females (74%, index 110). “Self-gifting” fits in with the popular concepts in the Chinese community like “xiao que xing” (“little but certain happiness”), “a sense of ceremony”, and “love and pamper myself”. Rather than simply buying something, making it a ‘gift to me” brings greater joy and satisfaction.
What it means: Sometimes we just want to treat ourselves. This is why cash doesn’t motivate in the long term and is a quickly forgotten reward. Payroll and rewards are separate beasts! However, allowing recipients to make a gift for themselves – perhaps a gift card, token, points or a value could all be appropriate – whatever their income and whatever the occasion.
High End, High Quality Speaks Volumes
When choosing a gift, HNWIs always consider the product itself, its brand and price.
In terms of product, “good quality and craftsmanship” (87%), “practicality” (85%), “uniqueness” (77%) and “attractive packaging” (74%) are considered to be the most important factors. When it comes to brand, important factors include “high-end, to gain face“ (90%), “well-known brand” (83%) and “whether the brand fits with giftee’s self-image” (80%); and with regards to the price, whether the “price meets giftee’s expectations” (61%) is the main consideration for “gifters“.
Males tend to gift more jewellery, flowers and handbags; females tend to gift more watches, personal care devices and mobile tablets; young people under 35 years old gift more diverse fashionable products such as accessories, skin care, perfume, cosmetics, beauty, sports cards, etc.
With HNWIs paying more attention to managing their health, almost 90% of the respondents pointed out that “healthcare products” are the most popular gifts for them. Appetite for luxury products are also increasing, and 60% of respondents sent luxury items as gifts more frequently compared with the last three years, with 18% doing so considerably more than before.
What it means: If you’re giving a gift to an HNWI then play by their rules and don’t scrimp on the brand or the ‘look and feel’. This is the place to get less ‘stuff’ and pay for quality/ perceived quality. This could mean offering designer brands on your rewards portal, experiences that money can’t buy, or offering unforgettable rewards.
Understand their ideal receiving experience
27% of HNWIs encounter difficulties when gifting. The top 3 most troublesome aspects are “unclear about giftees’ needs or preferences” (57%), “time and effort spent on selecting gifts” (50%) and “giftees are hard to impress” (49%). Results show that the female respondents “enjoy the process”, while the males “take shortcuts” in gift selection. Brands need to engage females more during gift selection, to deliver a more satisfying experience along the way, and guide male customers to make efficient purchases.
In addition, brands need to understand the roles of different purchase channels, so as to leverage their influence in marketing, and to create efficient and pleasant shopping experiences across all channels. With regards to domestic purchasing channels, 97% of HNWIs have brought gifts in brick-and-mortar shops. Among them, “domestic brand stores, counters” (76%), “domestic department stores, shopping centers” (68%) and “through friends” (58%) are the most common purchasing channels. 74% of HNWIs have purchased gifts overseas. 69% of HNWIs have shopped for gifts online.
What it means: When it comes to HNWI – it could be well worth tapping into their desire to have a real ‘customer experience’. People like a smooth checkout. They want to be guided as to what to buy. If you want to promote your benefits or rewards, that could mean quizzes, blogs or guides. If you want to pick up a gift, that means making sure that the whole process is seamless.If it’s an experience day, pre book it or ensure they can call and book. if it’s a gift card, make sure it can be used online. Never give a ‘poisoned chalice’ of a reward – ensure that the whole gift from receipt to redemption is a dream/.